27th Aug 2014 11:54
LONDON (Alliance News) - London Capital Group Holdings PLC Wednesday said it swung to a first half pretax loss, hit by poor market conditions and its move to a new trading platform.
In a statement, the financial services company offering online trading services said it made a GBP449,000 pretax loss in the six months ended June 30, compared with a GBP94,000 pretax profit in the corresponding period last year, due to a 40% drop in revenue from continuing operations to GBP9.2 million more than offsetting a fall in administrative expenses to GBP6.8 million from GBP11.6 million.
The fall in revenue was due the group's move to a new trading platform, which was concluded in April, as well as market factors.
"The business has been operating in challenging market conditions throughout the first half of the year, with relatively low levels of volatility across financial markets for much of the period. We have been focused on completing the deployment of the new trading platform and a programme to rationalise the fixed cost base," Chief Executive Kevin Ashby said in a statement.
The news comes after shareholders in June approved a proposed investment by GLIO Holdings Ltd, and possibly existing shareholders, of up to GBP17.5 million, putting an end to takeover interest from Spreadex.com Ltd.
The group also said Wednesday that Chief Financial Officer David Sparks intends to leave the company in order to take up an opportunity with another company. He will remain available to the board on a consultancy basis for a short time after his departure. Financial Controller Jenny Himsley will replace Sparks.
The change is one of two significant changes set to occur in September, with Chairman Giles Vardey also set to be replaced by Charles-Henri Sabet, who led the group's financing deal. Vardey will become senior independent director.
The moves also follow the resignation of former Chief Operating Officer John Jones in July.
In keeping with last year, the group did not pay an interim dividend.
London Capital shares were Wednesday quoted down 4.4% at 22.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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